The Federal Government continues to push a vital refinancing strategy to fight against the effects of the COVID-19 pandemic in the Mexican economy. Mexico City showed positive results in tax collection strategies, as the city exceeded expectations for 3Q21 through the reopening of economic activities and the timely compliance of tax payers.
CoDi, Banxico’s digital payment platform, has not reached its expected penetration for 2021 and continues growing slowly.
Ready? This is the week in finance!
The Ministry of Finance and Public Credit (SHCP) announced a recent cross-swap of government securities between the Ministry of Finance and institutional investors in amounting to MX$212 billion (US$10.4 billion). The two main objectives of the operation are: “To optimize the maturity profile of the Federal Government’s domestic debt and to allow holders of government debt to recalibrate their debt portfolios to help preserve the proper functioning of the debt market.”
The Mexican Stock Exchange recently highlighted that PEMEX met all of the goals stated in its Global Compliance Index in Transparency Portals. PEMEX transparency portals were awarded “the highest rating in the contest.” The new website received the award alongside other 10 projects.
Jaime Marquez, Director of Business Development, Grupo STP/LGEC, said that Banxico failed to comply with the expected growth of its electronic platform CoDi after its launch in 2018. “According to Banxico, in September of this year there were just over 10.7 million validated accounts and 2.9 million operations. Those figures are below those estimated two years ago, because it was expected that by September 2020 there would be 18.1 million registered users and almost 28 million transfers.” Only Metrobus accepts CoDi amongst the Mexican public services, as water, electricity, driver’s licenses and other governmental procedures have not yet implemented the digital platform.
Mexico City exceeded tax collection expectations for 3Q21. The reopening of economic activities benefited businesses around the city, as the gradual restoration of mobility continues to move forward. The Ministry of Administration and Finance (SAF)’s recent Quarterly Progress Report attributed the recent success to the reopening of economic activities and the timely compliance of Mexico City’s taxpayers. SAF indicated that Mexico City’s total income was 6.5 percent above the estimated amount for 3Q21. Mexico City gained a total of MX$10.77 billion (US$517 million) from this surplus as Mexico continues to solidify a strong tax collection strategy around the country.